U.S. President Donald Trump said Washington’s negotiations with Tehran will resume in Islamabad over the coming weekend and insisted all future discussions with Iran will be held only in Pakistan’s capital.
Trump said he “can trust” Iranian authorities and confirmed that the two sides are working on a plan to remove enriched uranium from Iranian territory. He stressed that Tehran would receive no financial compensation for the material and dismissed reports of a $20 billion payment as “false.”
He said real estate executive Steve Witkoff and Trump adviser Jared Kushner are expected to travel for the talks, adding that Vice President J.D. Vance could join, though no final decision has been made and no formal discussion has taken place with him on that point.
Trump said he is not interested in holding talks in countries that “did not help earlier in the process,” reiterating that Islamabad will be the exclusive venue.
U.S. naval blockade and economic pressure on Iran
The negotiations follow an initial round of talks in Islamabad on April 11–12 that ran for 21 hours but ended without agreement on Iran’s nuclear program or the status of the Strait of Hormuz.
On April 13, the United States launched a naval blockade of Iranian ports. Defense Secretary Pete Hegseth said the operation will continue “as long as it takes” to secure a deal.
The blockade comes on top of existing U.S. restrictions that Trump said will remain in place until a new agreement is reached. Iranian officials have framed their push for a deal partly as a response to the mounting economic pressure.
Iran was already under strain before the latest conflict. In 2025, inflation exceeded 40%, and the World Bank has projected it could approach 60% in 2026 as the economy contracts. More than $100 billion of Iranian assets remain frozen abroad under international sanctions.
Global energy shock from Strait of Hormuz disruption
The standoff is reverberating through global energy markets. The closure of the Strait of Hormuz — which normally handles around 20% of the world’s seaborne crude oil — has been described by the International Energy Agency as the “largest supply disruption in the history of the global oil market.”
Brent crude prices have surged above $120 a barrel, while Asian liquefied natural gas spot prices have jumped more than 140%. The strain on fuel costs is feeding into broader inflation concerns and raising uncertainty for energy-dependent economies and commodity traders.
Competing narratives on enriched uranium
Trump has portrayed the talks as being on the verge of success and has suggested a comprehensive deal is “within reach.” He has said Tehran is ready to cooperate on the “complete removal” of its enriched uranium stockpile — which he referred to as “nuclear dust” — and to halt support for regional proxy groups such as Hezbollah and Hamas.
Iranian officials, however, publicly reject that characterization. Authorities in Tehran have ruled out transferring enriched uranium abroad, calling it “as sacred to us as Iranian soil.” The gap over what to do with the stockpile was a key reason the first round of negotiations ended in a stalemate.
Dispute over sanctions relief and frozen assets
Tehran’s main condition for resuming substantive talks is the full lifting of sanctions and the release of its frozen assets. Washington has so far refused.
The American delegation in the first round was led by Vice President Vance and included Kushner and Witkoff. Iranian officials reportedly objected to the presence of the non-government figures in the U.S. team, seeing it as unconventional for high‑stakes security negotiations.
NATO pushed aside, allies left in the dark
Asked about NATO’s involvement, Trump said the alliance had offered assistance but that he told them to “stay clear” of the process. He did not provide details on how, or whether, European allies or other partners might be involved in future stages of a potential agreement, nor did he outline a timeline for the removal of enriched uranium.
Ceasefire clock adds urgency to Islamabad track
The diplomatic moves are unfolding against the backdrop of a fragile two‑week ceasefire, brokered by Pakistan and launched on April 8. That truce is nearing expiration, increasing pressure on both sides to show progress before the risk of renewed hostilities grows.
Pakistani officials say discussions are under way about convening a second round of talks in Islamabad but have not yet announced a firm date. With sanctions, the blockade, and energy market turmoil intensifying, traders and governments alike are watching the Islamabad channel for signs of either a breakthrough or a further escalation.
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